RadNet Inc

RadNet posted the strongest quarter among the five testing and diagnostics services stocks tracked, reporting revenues of $622.7 million, up 25% year on year and 2.3% above analysts' expectations, with a beat on EPS estimates. Dr. Howard Berger, President and Chief Executive Officer of RadNet, said the Imaging Center and Digital Health reportable operating segments continued to demonstrate strong growth and achieve record quarterly results, with Total Company Revenue up 25.0% and Digital Health segment Revenue up 56.5% from last year's same quarter. As a group, the five testing and diagnostics services stocks tracked beat analysts' consensus estimates by 2.8%, and their share prices are up 7.2% on average since the latest earnings results. Quest Diagnostics reported revenues of $3.04 billion, up 10.2% year on year and 2.3% above expectations, while Guardant Health reported revenues of $335 million, up 44.3% year on year and 6.4% above expectations, scoring the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Labcorp delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers, with revenues of $3.73 billion, up 5.8% year on year and in line with analysts' expectations, while NeoGenomics reported revenues of $201.7 million, up 11.2% year on year and 2.2% above expectations.

RadNet reported second-quarter 2026 adjusted earnings of 29 cents per share, down 14.7% year over year but beating the Zacks Consensus Estimate of 18 cents by 61.1%. Revenue rose 25% to $622.7 million, topping the consensus mark by 1.4%, driven by stronger advanced imaging volumes, recent acquisitions, and Digital Health expansion. The company raised its 2026 Imaging Center revenue guidance to $2.37-$2.42 billion from the prior $2.355-$2.405 billion, and increased adjusted EBITDA and free cash flow outlooks for that segment. Digital Health annual recurring revenues reached $105.5 million, up 97% year over year, and the company plans to deploy its newly FDA-cleared DeepHealth breast ultrasound AI solution across its network by year-end.

RadNet’s wholly owned subsidiary DeepHealth launched Reporting Pro for commercial deployment on June 10. The product integrates speech recognition, AI-generated findings, measurements, impressions, quality assurance, and structured reporting into a single radiology workflow. The launch aims to improve throughput, reporting speed, and quality control across RadNet’s network of outpatient diagnostic imaging centers. Analysts see about 30.6% average upside for RadNet shares, viewing the technology push as a way to make the outpatient imaging model more scalable.

DeepHealth, a wholly owned subsidiary of RadNet, has received FDA clearance for two new functionalities within its AI-powered Breast Suite. The clearances cover Breast Arterial Calcification Assessment, which automatically detects breast arterial calcifications on standard mammograms to identify potential cardiovascular disease risk, and Mammo Dx, which compares current and prior mammograms to track lesion changes and improve cancer detection. Both tools are now commercially available in the United States and will be deployed across RadNet imaging centers for real-world validation. The additions transform the Breast Suite into a fully integrated platform supporting cancer detection, cardiovascular risk assessment, breast density evaluation, and workflow optimization, currently used in over 10 million mammograms annually worldwide.